By Ruth Mantell
WASHINGTON (MarketWatch) -- U.S. producer prices rose 0.4% in October on a seasonally adjusted basis, as energy prices increased, the Labor Department reported Tuesday. Prices for finished energy goods rose 3.7% -- the largest gain since January -- as gasoline increased 9.8%. Meanwhile, food prices fell 0.1% in October as the index for fresh and dry vegetables declined 8.1%. Core producer prices, which exclude volatile food and energy costs, fell 0.6% on lower prices for light motor trucks and passenger cars. The decline follows 11 consecutive months of gains in core prices. Economists surveyed by MarketWatch had expected overall producer prices to rise 0.7%, and for the core to gain 0.1%. In September, overall producer prices rose 0.4%, while the core gained 0.1%. The government also reported that prices for intermediate goods rose 1.2% in October, while prices for crude goods gained 4.3%.
